Tackle Loan or Hope for Credit Card Balance Transfer

RuthyB27

Hi All wondering if you could help me decide what to do.

I have been debt busting the past few months and made some good inroads however stuck on what to do with last couple.

Blackhorse Car Loan
Balance £8500 46 months remaining £183 per month 27.9% APR
Settlement Figure £5500

Barclaycard £900 Currently paying £200 per month 9% APR

Would you look to hammer down the barclaycard in the hope they offer a smokey deal on a 0% balance transfer if I say I am looking to close the card or pay minimum on this and hammer down the car given the high APR.

Or would you clear barclaycard as not large balance compared to loan and then once that is clear throw everything at the loan not sure how much I will loose in saving interest by doing this.

chasingfreedom

Well personally although the car is higher APR it is going to take longer to clear and because the balance of the Barclaycard is so low and it's taking such a big monthly chunk of money I'd clear that first then you can overpay on your car with the £200 later

rockm87

I'd clear the barlcaycard, then throw what I can on the loan.

Can you pay anymore on the barlcaycard, try to clear it in a couple of months?

Tixy

In terms of answering the question about how much additional interest you would pay - you can throw the figures in to a snowball calculator - such as here - http://www.whatsthecost.com/snowball.aspx

If you can afford a max of £383 a month then I think it will cost you about £240 more in interest if you pay off the card first then the loan (assumed the minimum payment on the card is 2.25% of the balance or £25 and that there are no fees for overpaying the loan).